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The Boeing Company (BA - Free Report) incurred an adjusted loss of 82 cents per share in second-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 99 cents. The bottom line, however, deteriorated from the year-ago quarter’s reported loss of 37 cents per share.
The year-over-year downside can be attributed to lower defense margins.
Including one-time items, the company reported GAAP loss of 25 cents per share against the year-ago quarter’s reported earnings of 32 cents.
The Boeing Company Price, Consensus and EPS Surprise
Boeing’s revenues amounted to $19.75 billion, which beat the Zacks Consensus Estimate of $18.46 billion by 7%. The top line also improved 18% from the year-ago quarter’s reported figure of $16.68 billion.
This improvement was driven by higher year-over-year revenues registered by the company’s Commercial Airplanes and Global Services business units.
Total Backlog
Backlog at the end of the second quarter was $439.56 billion, up from $411.45 billion recorded at the end of first-quarter 2023.
Segmental Performances
Commercial Airplane: Revenues at this segment increased 41% year over year to $8.84 billion, driven by higher 787 deliveries. The segment incurred an operating loss of $383 million compared with an operating loss of $219 million in the year-ago quarter.
Boeing delivered 136 commercial planes during the quarter under review, up 12% year over year.
The backlog for this segment remained healthy, with more than 4,800 airplanes valued at $363 billion.
Boeing Defense, Space & Security (BDS): The segment recorded revenues of $6.17 billion, indicating a year-over-year decline of 0.4%. This was primarily driven by lower defense deliveries. The unit incurred an operating loss of $527 million against an operating income of $71 million in the year-ago quarter.
BDS recorded a backlog of $58 billion, 31% of which comprised of orders from international clients.
Global Services: Revenues at this segment improved 10% to $4.75 billion. This unit generated an operating income of $856 million compared with $728 million in the prior-year quarter, driven by higher commercial volume and favorable mix.
Boeing Capital Corporation (BCC): This segment reported negative quarterly revenues of $2 million.
Financial Condition
Boeing exited second-quarter 2023 with cash and cash equivalents of $7.25 billion, and short-term and other investments of $6.51 billion. At the end of 2022, the company had cash and cash equivalents of $14.61 billion, and short-term and other investments of $2.61 billion. Long-term debt amounted to $47.66 billion at the end of the second quarter, down from $51.81 billion recorded at the end of 2022.
The company’s operating cash flow as of Jun 30, 2023, was $2,557 million against cash outflow of $3.14 billion at the end of second-quarter 2022.
Free cash flow totaled $1,793 million at the end of second-quarter 2023 against free cash outflow of $3.75 billion at the end of second-quarter 2022.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
Net sales amounted to $16.69 billion, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion registered in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 4.2%. The bottom line improved 51.5% from the year-ago quarter’s level of 33 cents.
Net sales totaled $454 million, which beat the Zacks Consensus Estimate of $445 million by 2.2%. Also, the top line witnessed an improvement of 15.6% from the year-ago quarter’s $393 million.
Raytheon Technologies Corporation’s (RTX - Free Report) second-quarter 2023 adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate of $1.17 by 10.3%. The bottom line also improved 11% from the year-ago quarter’s level of $1.16.
Sales of $18,315 million beat the Zacks Consensus Estimate of $17,543 million by 4.4%. The figure also rose 12.3% from $16,314 million recorded in the year-ago period.
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Boeing's (BA) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
The Boeing Company (BA - Free Report) incurred an adjusted loss of 82 cents per share in second-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 99 cents. The bottom line, however, deteriorated from the year-ago quarter’s reported loss of 37 cents per share.
The year-over-year downside can be attributed to lower defense margins.
Including one-time items, the company reported GAAP loss of 25 cents per share against the year-ago quarter’s reported earnings of 32 cents.
The Boeing Company Price, Consensus and EPS Surprise
The Boeing Company price-consensus-eps-surprise-chart | The Boeing Company Quote
Revenues
Boeing’s revenues amounted to $19.75 billion, which beat the Zacks Consensus Estimate of $18.46 billion by 7%. The top line also improved 18% from the year-ago quarter’s reported figure of $16.68 billion.
This improvement was driven by higher year-over-year revenues registered by the company’s Commercial Airplanes and Global Services business units.
Total Backlog
Backlog at the end of the second quarter was $439.56 billion, up from $411.45 billion recorded at the end of first-quarter 2023.
Segmental Performances
Commercial Airplane: Revenues at this segment increased 41% year over year to $8.84 billion, driven by higher 787 deliveries. The segment incurred an operating loss of $383 million compared with an operating loss of $219 million in the year-ago quarter.
Boeing delivered 136 commercial planes during the quarter under review, up 12% year over year.
The backlog for this segment remained healthy, with more than 4,800 airplanes valued at $363 billion.
Boeing Defense, Space & Security (BDS): The segment recorded revenues of $6.17 billion, indicating a year-over-year decline of 0.4%. This was primarily driven by lower defense deliveries. The unit incurred an operating loss of $527 million against an operating income of $71 million in the year-ago quarter.
BDS recorded a backlog of $58 billion, 31% of which comprised of orders from international clients.
Global Services: Revenues at this segment improved 10% to $4.75 billion. This unit generated an operating income of $856 million compared with $728 million in the prior-year quarter, driven by higher commercial volume and favorable mix.
Boeing Capital Corporation (BCC): This segment reported negative quarterly revenues of $2 million.
Financial Condition
Boeing exited second-quarter 2023 with cash and cash equivalents of $7.25 billion, and short-term and other investments of $6.51 billion. At the end of 2022, the company had cash and cash equivalents of $14.61 billion, and short-term and other investments of $2.61 billion. Long-term debt amounted to $47.66 billion at the end of the second quarter, down from $51.81 billion recorded at the end of 2022.
The company’s operating cash flow as of Jun 30, 2023, was $2,557 million against cash outflow of $3.14 billion at the end of second-quarter 2022.
Free cash flow totaled $1,793 million at the end of second-quarter 2023 against free cash outflow of $3.75 billion at the end of second-quarter 2022.
Zacks Rank
Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Q2 Defense Earnings
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
Net sales amounted to $16.69 billion, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion registered in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 4.2%. The bottom line improved 51.5% from the year-ago quarter’s level of 33 cents.
Net sales totaled $454 million, which beat the Zacks Consensus Estimate of $445 million by 2.2%. Also, the top line witnessed an improvement of 15.6% from the year-ago quarter’s $393 million.
Raytheon Technologies Corporation’s (RTX - Free Report) second-quarter 2023 adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate of $1.17 by 10.3%. The bottom line also improved 11% from the year-ago quarter’s level of $1.16.
Sales of $18,315 million beat the Zacks Consensus Estimate of $17,543 million by 4.4%. The figure also rose 12.3% from $16,314 million recorded in the year-ago period.